He has equipment which he wants to be part of the deal. I'm not too fond of someone else's equipment. All equipment is less than 3 years old. 36 hydro skagg, 60" Lazer Z, 2 Redmax trimmers, 2 backpack blowers, Edger, Lesco Spreader, Backpack Sprayer, 16Ft H&H Trailer....and mentioned something about Groundskeeper Pro.

Can provided Certified copies of P&L and Balance sheet.

No written agreements with any of these customers.

Is getting out of lawn care "because my wife and I are buying a tanning salon."

Looking for $25k.

Any REAL input as to additional questions, the next steps, etc...remember these numbers have not been verified. Advice from people who have experience purchasing another company only....please.

That is one of the things that immediately stuck out while on the phone taking notes.. I think the revenue / customer based upon customer type is reasonable...but the net IS questionable...His response was that is the net before "I paid myself & truck payment". I'm going to have him fax the finanancials to me.

I'm not sure that it's worth the money even at $12k.....with an operation this small... I could use $12k for marketing and generate more revenue than that????

I'm with John. The numbers are fishy. I would trust nothing less than the approriate tax return for however he is structured.

I'd pay only a percentage of the equipment value so it sold at a profit and about what it would cost to aquire an account through your normal means, maybe a little less. I wouldn't worry to much about the contract situation if he has paper or computer documentation of hopw long these people have been with him. Purchsed right they can be converted to contract and allow for some loss on general principal.

I found this earlier this morning reading the paper. I guess what I am saying is that I can generate (past experience) 50 residential customers (generating that same amount of revenue) with less $ in marketing.

From what you've advised I should:
1. Get tax statement

Have any of you bought something this small? If so what are the reasons and advantages?

I bought fert accounts (no equip) in spring 2002 because I wanted more accounts and advertising has been costly with erratic results. Although subject to attrition, you'll get that selling on your own or buying, but you get these with no effort just $. If you advertise you gotta go estimate and sell.

These particular accounts fit my program exactly, work was priced closely to mine ( some more, some less) and it fattened up an area where I already had accounts. I didn't worry about the cheap accounts as i attempted to boost a few after aquiring and lost them. The deal was so fair I didn't care. A few more a a bit low but I didn't complain because the new route density negated that. And like I said some were more so that helped too.

you asked if anyone bought this small. Well I bought smaller in the fall of 2001.

30 mowing accounts, about 20 fert "contacts for next season"
36"Lesco gear w/sulky,bagger; 21" Airens; Echo trimmer, hand blower, hedge trimmer; Lesco spreader, push and backpack sprayers, trimmer trap; and an introduction to the customers.
No contracts.
All the equipment was in it's first season. I could use the equipment because most of what I had was homeowner stuff for the three lawns I was doing part time.

Quess what I paid.
Less than half the new price for the equipment.
$2300

I figure I just bought the equip. and took over his accounts to help the customers finish the season. Many were under priced. still are. Raised prices and lost about a third.
I have no idea how he even paid for the equipment with what he was charging.

Now I'm going out to put more fliers up tommorow.

I don't realy have any advice, exept if you need to raise prices on the customers be ready to explain why you charge more. What extra do you do. "my expences are higher " might not cut it. Find out What he charges for specific jobs. If it's in line with what you would then it might be an OK transition.

If you see a lawn that you would charge $20 for and he's only getting $10. Then your in trouble.